Description

Guidelines for early pay-in procedures for Multi Commodity Exchange (MCX) securities undergoing face value split from Rs 10 to Rs 2 per share, effective January 2, 2026.

Summary

NSE Clearing Limited has issued instructions for early pay-in (EPI) of securities for Multi Commodity Exchange (MCX) undergoing a face value split from Rs 10 per share to Rs 2 per share. The circular provides specific procedures for handling early pay-in during the corporate action period, with record date and ex-date on January 2, 2026.

Key Points

  • MCX (ISIN: INE745G01035) is undergoing face value split from Rs 10/- to Rs 2/- per share
  • Members must use old/existing ISIN for early pay-in on specific dates and settlement numbers
  • For January 2, 2026 (settlement 2026002): use old ISIN
  • For January 5, 2026 (settlements 2026002 & 2026003): use new ISIN for settlement 2026003
  • Conversion ratio: For sale of 10 shares, early pay-in should be 2 shares in old ISIN
  • Block mechanism provisions apply as per SEBI circular requirements
  • Custodians using pool accounts must upload client-wise allocation details based on actual traded quantity

Regulatory Changes

No new regulatory changes introduced. This circular implements existing early pay-in framework (NCL/CMPT/67751 dated April 29, 2025) for the specific MCX corporate action.

Compliance Requirements

  • Members/Trading Participants: Execute early pay-in in old ISIN (INE745G01035) for trades on January 2 and 5, 2026 without adjusting for conversion ratio
  • Block Mechanism: Members must adhere to NCL circular NCL/CMPT/53386 dated August 22, 2022 regarding block mechanism in client demat accounts
  • Client-wise Allocation: When using block mechanism for early pay-in, do NOT upload client-wise allocation file
  • Custodians: Must upload client-wise early pay-in allocation details based on actual traded quantity (not adjusted quantity) when providing EPI through pool accounts
  • Post-Record Date: All participants must use new ISIN for pay-in/early pay-in instructions after the record date

Important Dates

  • Record Date: January 2, 2026
  • Ex-Date: January 2, 2026
  • EPI Date 1: January 2, 2026 (Settlement Number 2026002) - Use old ISIN
  • EPI Date 2: January 5, 2026 (Settlement Numbers 2026002 & 2026003) - Old ISIN for 2026002, New ISIN for 2026003

Impact Assessment

Operational Impact: Members and custodians handling MCX securities must carefully manage the transition between old and new ISIN during the settlement period. The 5:1 split ratio requires precise calculation to ensure correct quantity delivery in the old ISIN format.

Market Impact: Limited to participants trading MCX securities during the corporate action period. Incorrect early pay-in procedures could result in settlement failures or margin calculation issues.

Client Impact: Clients selling MCX shares during this period should be informed about the corporate action to avoid confusion regarding settlement quantities and ISIN references.

Impact Justification

Operational guidance for specific corporate action affecting MCX securities; requires member attention for proper settlement procedures during face value split period.